Stock Code: Shanghai Step Electric Corporation(002527) stock abbreviation: Shanghai Step Electric Corporation(002527) Announcement No.: pro 2022017 Shanghai Step Electric Corporation(002527)
Announcement on the proposed renewal of accounting firm
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Shanghai Step Electric Corporation(002527) (hereinafter referred to as “the company”) deliberated and adopted the proposal on renewing the appointment of Lixin Zhonglian Certified Public Accountants (special general partnership) as the company’s external audit institution in 2022 at the 20th meeting of the 5th board of directors and the 14th meeting of the 5th board of supervisors held on April 23, 2022, The company plans to renew the appointment of Lixin Zhonglian Certified Public Accountants (special general partnership) (hereinafter referred to as “Lixin Zhonglian”) as the company’s external auditor in 2022. This matter needs to be submitted to the company’s 2021 annual general meeting for deliberation. Relevant matters are hereby announced as follows:
1、 Description of the proposed accounting firm
Lixin Zhonglian is an accounting firm with securities and futures related business qualifications approved by the Ministry of Finance and China Securities Regulatory Commission. Lixin Zoomlion has sufficient independence, professional competence and investor protection ability, and has many years of experience and professional ability in providing audit services for listed companies. In the process of providing audit services for the company, Lixin zhonglianqin was diligent, adhered to the principle of independent audit, strictly followed the requirements of relevant laws, regulations and policies, fairly and reasonably expressed independent audit opinions, and completed various audit businesses of the company as planned, which can meet the requirements of the company’s future business development and financial audit. On the basis of fully listening to the opinions and suggestions of the audit committee of the board of directors and independent directors, and considering the continuity and stability of the audit work, the board of directors agreed to renew the appointment of Lixin Zhonglian as the company’s external audit institution in 2022 for one year, and requested the general meeting of shareholders to authorize the company’s management to negotiate with the accounting firm to determine its audit fee in 2022 in accordance with the market fair and reasonable pricing principle.
2、 Basic information of the accounting firm to be employed
(I) institutional information
1. Basic information
(1) Organization Name: Lixin Zhonglian Certified Public Accountants (special general partnership)
(2) Date of establishment: October 31, 2013 (transformed and established by Lixin Zhonglian Mindu certified public accountants Co., Ltd.)
(3) Organization form: special general partnership accounting firm
(4) Registered address: 1-1-2205-1, north area of financial and Trade Center, No. 6865, Asia Road, Tianjin pilot free trade zone (Dongjiang Bonded Port Area)
(5) Chief partner: Li Jincai
(6) Personnel information: at the end of 2021, there were 43 partners and 255 certified public accountants, including 125 certified public accountants who signed the audit report of securities service business.
(7) Audit income: in 2021, the total audited income was 3242591 million yuan, the audit income was 2569721 million yuan, and the securities business income was 1201677 million yuan.
(8) Business situation: in 2021, there were 29 audit clients of listed companies, with a total audit fee of 30.59 million yuan. The main industries include manufacturing, power, heat, gas and water production and supply, real estate, information transmission, software and information technology services, and 3 audit clients of Listed Companies in the same industry as the company.
2. Investor protection ability
By the end of 2021, the balance of occupational risk fund of Lixin Zhonglian was 19.917 million yuan; The cumulative compensation limit of occupational insurance purchased is 60 million yuan, and the withdrawal of occupational risk fund or the purchase of occupational insurance comply with relevant regulations; Lixin Zoomlion has not undertaken civil liability in civil litigation related to practice in recent three years.
3. Integrity record
In the past three years, Lixin Zoomlion has received 0 criminal punishment, 0 administrative punishment, 7 Supervision and management measures, 0 self-discipline and supervision measures and 0 disciplinary sanctions for its practice. In recent three years, 12 employees have been subject to criminal punishment 0 times, administrative punishment 0 times, supervision and management measures 7 times and self-discipline supervision measures 0 times.
(II) project information
1. Basic information
Partner of the project to be signed: Li Chunhua, partner, became a certified public accountant in 1999, began to engage in the audit of Listed Companies in 2004, began to practice in Lixin Zhonglian in 2018, and began to provide audit services for the company in 2019; Signed or reviewed audit reports of several listed companies in the past three years.
Certified public accountant to be signed: Tang Jian, the signing certified public accountant, became a certified public accountant in 2010, began to engage in the audit of Listed Companies in 2015, began to practice in Lixin Zhonglian in 2018, and began to provide audit services for the company in 2019; Participated in the annual report audit projects of several listed companies in the past three years.
Reviewer of project quality control: Deng Chao, partner, became a certified public accountant in 2003, began to engage in audit and review of Listed Companies in 2010, began to practice in Lixin Zhonglian in 2010, and began to provide audit services for the company in 2019; Over the past three years, the audit items of the annual reports of several listed companies have been reviewed.
2. Integrity record
The partners of the project to be signed, the certified public accountants to be signed and the project quality control reviewers have not been subject to criminal punishment due to their professional behavior, administrative punishment and supervision measures by the CSRC, its dispatched offices and industry competent departments, and self-discipline supervision measures and disciplinary sanctions by self-discipline organizations such as stock exchanges and industry associations in the past three years.
3. Independence
There are no circumstances that may affect the independence of Lixin Zhonglian, the project partner to be signed, the certified public accountant to be signed and the project quality control reviewer.
4. Audit fees
Pricing principle of audit fees: mainly based on the responsibility of professional services and the degree of professional technology investment, and comprehensively considering the experience and level of employees involved in the work, the corresponding charging rate and the working hours invested.
The board of directors of the company requests the general meeting of shareholders of the company to authorize the management of the company to negotiate with the accounting firm to determine its audit fee for 2022 in accordance with the market fair and reasonable pricing principle.
3、 Procedures to be performed by the accounting firm to be renewed
(I) performance of the audit committee
The audit committee of the board of directors of the company reviewed the practice qualification, integrity record, business situation and independence of Lixin Zhonglian in advance, and believed that Lixin Zhonglian has the professional ability and qualification to provide audit services for the company, the professional competence, independence and investor protection ability to provide audit services for listed companies, and can meet the annual audit requirements of the company, It is agreed to submit the matter of reappointment of Lixin Zhonglian as the company’s external audit institution in 2022 to the board of directors for deliberation.
(II) prior approval opinions and independent opinions of independent directors
1. Prior approval opinions of independent directors
Lixin Zhonglian is qualified to engage in Securities and futures related businesses and has the experience and ability to provide audit services for the company. In the process of serving as the company’s audit institution and carrying out various special audits and financial statement audits, Lixin Zhonglian can adhere to the principle of independent audit, issue various professional reports for the company objectively and fairly, well fulfill the responsibilities and obligations of the audit institution, and meet the requirements of the entrusted matters of the company.
In conclusion, we agree to submit the proposal on renewing the appointment of Lixin Zhonglian Certified Public Accountants (special general partnership) as the company’s external auditor in 2022 to the 20th meeting of the Fifth Board of directors for deliberation. 2. Independent directors’ opinions
Lixin Zhonglian adheres to the principle of independent audit in the process of practice, and the professional reports issued for the company are objective and fair. The company’s continued employment of Lixin Zhonglian is conducive to ensuring the quality of the company’s audit work and protecting the interests of the company and shareholders, especially the interests of minority shareholders. Lixin Zoomlion has sufficient independence, professional competence and investor protection ability. The company’s review procedures for the renewal of the 2022 audit institution comply with the relevant provisions of relevant laws and regulations, agrees to recommend Lixin Zhonglian as the audit institution of listed companies, and agrees to submit the matter to the 2021 annual general meeting of shareholders of the company for review.
(III) deliberation and voting of the board of directors on the proposal to renew the appointment of accounting firm
At the 20th meeting of the 5th board of directors held on April 23, 2022, the company considered and approved the proposal on renewing the appointment of Lixin Zhonglian Certified Public Accountants (special general partnership) as the company’s external auditor in 2022, and agreed to hire Lixin Zhonglian as the company’s external auditor in 2022. The independent directors have expressed their prior approval opinions and agreed independent opinions on the matter.
(IV) effective date
The matter of renewing the appointment of the accounting firm needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation, and the general meeting of shareholders shall authorize the management of the company to negotiate with the accounting firm to determine its 2022 audit fee and handle and sign relevant service agreements in accordance with the market fair and reasonable pricing principle. The employment period is one year, which will take effect from the date of deliberation and approval of the 2021 annual general meeting of shareholders of the company.
4、 Documents for future reference
1. Resolutions of the 2021 annual meeting of the audit committee of the 5th board of directors of the company;
2. Resolutions of the 20th meeting of the 5th board of directors of the company;
3. Resolutions of the 14th meeting of the 5th board of supervisors of the company;
4. Prior approval opinions of independent directors on matters related to the 20th meeting of the Fifth Board of directors;
5. Independent opinions of independent directors on matters related to the 20th meeting of the Fifth Board of directors;
6. Business license and other relevant information of the proposed accounting firm.
It is hereby announced
Shanghai Step Electric Corporation(002527) board of directors April 26, 2022
